A depreciation of a nation's currency shifts:
A)down its supply curve of exports in terms of the domestic currency
B)down its supply curve of exports in terms of the foreign currency
C)down its demand curve for exports in terms of the foreign currency
D)up its supply curve of imports in terms of the foreign currency

Question

Quizplus · Accepted Answer

A depreciation of a nation's currency makes its exports cheaper in terms of foreign currency. This means that the quantity of exports supplied in terms of foreign currency will increase, shifting the supply curve of exports down in terms of foreign currency.

A Depreciation of a Nation's Currency Shifts